INCOME TAX OFFICER, INCOME TAX V. RAJEEV KUMAR MITTAL, HISAR

ITA 5141/DEL/2025

AI Insights

The case involves an appeal by the Income Tax Officer against the order of the National Faceless Appeal Centre (NFAC), which had deleted a penalty under Section 271AAC(1) of the Income Tax Act, 1961, for the Assessment Year 2018. The penalty deletion was part of a larger assessment dispute where a significant addition to income was made, which was partially contested. The Revenue's appeal to the ITAT was primarily based on the monetary threshold for filing appeals, which was set at Rs. 60,00,000 by recent CBDT Circulars. Both parties agreed that the tax effect was below this threshold, leading to the dismissal of the appeal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 830911 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2026
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 25-08-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Assessee Lawyers: LALIT MOHAN
• Keywords: Tax effect
• Section: 147; 144

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘C’: NEW DELHI) BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER, ITA No:- 5141/Del/2025 (Assessment Year- 2018) Income Tax Officer, Aaykar Bhawan, Sector-14, Hisar, Haryana-125001. Vs Rajeev Kumar Mittal, H. No. 95, HBC, Ward no. 3, Sirsa Road, Hisar, Haryana- 125001. PAN- ALDPM6294Q Revenue Assessee Assessee by Shri Lalit Mohan, CA Revenue by Shri Om Prakash, Sr. Dr Date of Hearing 19.01.2026 Date of Pronouncement 19.01.2026 ORDER PER BRAJESH KUMAR SINGH, AM: This appeal by the Revenue is directed against the order of the National Faceless Appeal Centre (NFAC), New Delhi, dated 10.06.2025 [hereinafter referred to as the ‘Ld. CIT(A)’] arising out of the Penalty order dated 14.08.2023 Printed from counselvise.com ITA No.- 5141/Del/2025 Page 2 of 4 passed under Section 271AAC(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) pertaining to A.Y. 2018. 2. At the outset, it was pointed out by the Sr. AR that the tax effect in this appeal is Rs. 52,37,394/- and referred to the grounds of the appeal which are as under: “(i) The assessment in the above said case completed u/s 147 r.w.s 144 r.w.s. 144B dated 28.02.2023 with addition of Rs. 8,75,15,910/-. The decision of Ld. CIT(A) vide order dated 09.06.2025 on the deletion of Rs. 8,72,89,905/- which involves tax effect of Rs. 6,74,31,452/- is not acceptable and further appeal before the Hon’ble ITAT is recommended vide ITA No. 4792/Del/2025. (ii) The tax effect involved in the deletion of penalty u/s 271AAC1 in this case is Rs. 52,37,394/- which is below the monetary limit for filing further appeal before the Hon'ble ITAT. A Further appeal has also been filed against the assessment order u/s 147 r.w.s. 144 r.w.s. 144B dated 28.02.2023 before the ITAT, therefore further appeal is also recommended.” 3. The Ld. Sr. DR did not object to the above submission of the assessee. 4. We have heard both the parties and perused the material available on record. Both sides, [Representatives of Revenue and the Assessee] were in agreement, at the time of hearing before us, that the tax effect in the present appeal is below Rs. 60,00,000/-. Therefore, in view of the CBDT, Circulars No. 5/2024 dated 15th March 2024 and 09/2024 dated 17/09/2024 revising the monetary limit for filing of the departmental appeals before the ITAT to Rs. 60,00,000/-, the appeal filed by the Revenue is not maintainable and same is dismissed. Printed from counselvise.com ITA No.- 5141/Del/2025 Page 3 of 4 4. We further clarify that Revenue will be at liberty to approach Income Tax Appellate Tribunal U/s 254(2) of Income Tax Act, 1961, seeking restoration of the above appeal if it is found by them that the same was covered in the exceptions as laid down in the aforesaid CBDT Circulars. 4. In the result, appeal filed by the Revenue is dismissed. Order pronounced in the Open Court on 19.01.2026 Sd/- Sd/- (CHALLA NAGENDRA PRASAD) (BRAJESH KUMAR SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 20/01/2026. Pooja/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Printed from counselvise.com ITA No.- 5141/Del/2025 Page 4 of 4 1 Date of dictation of Tribunal order 19.01.2026 2. Date on which typed draft order is placed before the dictating Member 19.01.2026 3 Date on which typed draft order is placed before the other Member (in the case of DB) 4. Date on which the approved draft order comes to P.S/Sr.P.S 5. Date on which the fair Order is placed before the dictating Member for sign 6. Date on which the fair Order is placed before the other Member for sign ( in the case of DB) 7. Date on which the Order comes back to P.S./Sr.P.S for uploading on ITAT website 8. Date of uploading, if not, reason for not uploading 9. Date on which the file goes to the Bench Clerk 10. Date on which order goes for xerox 11. Date on which order goes for endorsement 12. Date on which the file goes to the Superintendent/O.S. for checking 13. Date on which the file goes to the Assistant Registrar for signature on the order 14. Date on which the file goes to dispatch section for dispatch the Tribunal Order 15. Date of dispatch of order 16. Date on which file goes to Record Room after dispatch the order Printed from counselvise.com "